Saudi Arabia generic drugs market is projected to witness a CAGR of 7.18% during the forecast period 2024–2031, growing from USD 4.38 billion in 2023 to USD 7.62 billion in 2031. The growth of the market is supported by the rising cases of chronic diseases, increasing government initiatives, and rising investments by the key market players towards collaborations to support the introduction of various biosimilars in the country.
Implementing various measures to facilitate the availability of generic alternatives in the country after the expiration of patents fosters affordability and competition in Saudi Arabia. The country’s healthcare system aims to provide effective therapeutic solutions to patients while ensuring cost efficiency by encouraging the adoption of generic drugs, thus providing lucrative growth opportunities to the market. The growing efforts of the government to boost awareness about the different benefits associated with generic drugs are also providing lucrative growth opportunities to the market. They contain the same active ingredient, route of administration, strength, and dosage form as their brand name counterparts and offer cost efficiency to the patient.
Additionally, the growing prevalence of various chronic diseases and infectious diseases, and genetic disorders in different regions across Saudi Arabia is propelling the requirement for effective and safe medications in the country, thus bolstering the market’s demand. According to the estimates of the International Diabetes Federation (IDF), approximately 5.6 million individuals will be living with diabetes in Saudi Arabia by 2030.
The generic drugs market in Saudi Arabia is a vital component of the Kingdom’s healthcare ecosystem, driven by efforts to enhance affordability, improve access to medicines, and support Vision 2030’s healthcare transformation goals. Generic drugs, which offer cost-effective alternatives to branded medications, are gaining traction amid rising healthcare expenditures and a growing population. This report provides a comprehensive assessment of the Saudi Arabia generic drugs market, segmented by application, type, brand, route of administration, distribution channel, and region, while exploring opportunities and forecasting trends from 2017 to 2031.
The Saudi generic drugs market has witnessed steady growth since 2017, fueled by government policies promoting local manufacturing, patent expirations of blockbuster drugs, and increasing demand for affordable treatments. Valued at approximately USD 2.3 billion in 2022, the market is projected to reach USD 5.6 billion by 2031, growing at a compound annual growth rate (CAGR) of around 10.4% from 2023 to 2031. The Saudi Food and Drug Authority (SFDA) plays a pivotal role in ensuring quality and encouraging generics uptake, aligning with the Kingdom’s aim to reduce reliance on imported pharmaceuticals.
Click : https://www.marketsandata.com/industry-reports/saudi-arabia-generic-drugs-market
By Application
Generic drugs address a wide range of therapeutic areas:
- Neurovascular: Treatments for neurological and vascular conditions, such as stroke and epilepsy, drive demand, supported by an aging population and lifestyle changes.
- Cardiovascular: Dominating the market with over 25% share in 2023, generics for hypertension and heart disease are widely used due to high prevalence and cost-effectiveness.
- Dermatology: Skin-related generics, including anti-acne and antifungal drugs, are growing as consumer awareness rises.
- Oncology: Cancer generics are expanding with patent expirations, offering affordable options for chemotherapy and supportive care.
- Diabetology: With diabetes affecting over 18% of Saudis, generics like metformin lead this segment, fueled by chronic disease management needs.
- Respiratory: Asthma and COPD treatments see steady demand, supported by environmental factors like dust and urbanization.
- Others: Including gastrointestinal and infectious disease generics, this category grows with broader healthcare access.
By Type
The market is split into two key types:
- Biosimilar Generics: These complex biologics, mimicking branded biologics, are gaining momentum as patents expire. Growth is expected to accelerate post-2025 with advancements in local biotech capabilities.
- Small Molecule Generics: Dominating with over 80% share in 2023, these simpler, chemically synthesized drugs benefit from established manufacturing processes and widespread acceptance.
By Brand
Generic drugs are categorized by branding:
- Branded Generic: These generics carry a brand name from manufacturers, offering perceived quality assurance. They lead the market due to physician and patient trust.
- Pure Generic: Unbranded generics focus on cost, gaining traction in public healthcare settings and expected to grow with cost-containment policies.
By Route of Administration
Administration methods influence market dynamics:
- Oral: The largest segment, oral generics like tablets and capsules, hold over 60% share due to ease of use and widespread applicability.
- Injectable: Growing with biosimilars and hospital use, injectables cater to oncology and cardiovascular treatments.
- Topical: Creams and ointments for dermatology and pain relief see steady demand, particularly in retail settings.
- Others: Including inhalers and transdermal patches, this segment supports niche applications with gradual growth.
By Distribution Channel
Distribution channels shape market access:
- Hospital Pharmacy: Leading with over 40% share in 2023, hospital pharmacies serve in-patient needs, especially for injectables and oncology generics.
- Retail Pharmacy: A key channel for chronic disease generics, retail pharmacies benefit from widespread chains like Nahdi and Al-Dawaa.
- Online Pharmacy: Rapidly expanding with digitalization, online platforms saw a surge post-COVID-19, projected to grow at a CAGR of 15% through 2031.
By Region
The market varies across Saudi Arabia’s regions:
- Northern and Central Region: Riyadh dominates with advanced healthcare facilities and high generics adoption in public and private sectors.
- Western Region: Jeddah and Makkah drive demand due to population density and medical tourism, with strong retail pharmacy presence.
- Eastern Region: Industrial hubs like Dammam focus on chronic disease management, supporting generics growth.
- Southern Region: Less developed but improving with healthcare investments, showing potential for future expansion.
Opportunities
The Saudi generic drugs market offers significant opportunities:
- Local Manufacturing: Vision 2030’s push for 40% local pharmaceutical production by 2030 boosts companies like SPIMACO and Tabuk Pharmaceuticals.
- Patent Expirations: Blockbuster drugs losing patents create openings for generics, particularly in oncology and diabetology.
- Healthcare Reforms: Increased insurance coverage and SFDA’s streamlined approvals enhance market access.
- Digital Growth: Online pharmacies and telemedicine expand distribution, especially in remote areas.
Challenges
Key challenges include:
- Quality Perception: Branded drugs retain preference among some consumers and physicians, slowing generics uptake.
- Regulatory Hurdles: Stringent SFDA standards, while ensuring quality, delay market entry for some generics.
- Import Dependency: Over 70% of generics are imported, exposing the market to supply chain risks.
- Price Competition: Intense competition among manufacturers pressures profit margins.
Forecast (2017–2031F)
From 2017 to 2022, the market established a foundation with policy support and growing acceptance. Post-2023, growth accelerates, driven by local production, digital channels, and chronic disease prevalence. By 2031, small molecule generics and oral drugs will remain dominant, while biosimilars and online pharmacies gain share. The market could exceed USD 5.6 billion, with cardiovascular and diabetology applications leading.
Conclusion
Saudi Arabia’s generic drugs market is poised for robust growth, underpinned by government initiatives, demographic trends, and healthcare advancements. While challenges like perception and imports persist, opportunities in localization and digitalization are transformative. By 2031, the Kingdom could significantly reduce healthcare costs and enhance access, solidifying its position as a generics leader in the region.
Contact Mr. Vivek Gupta 5741 Cleveland street, Suite 120, VA beach, VA, USA 23462 Tel: +1 (757) 343-3258 Email: info@marketsandata.com Website: https://www.marketsandata.com
